- South Korea’s National Pension Service (NPS) invested millions in Coinbase shares.
- The revelation follows a recent stock filing report.
- While the investment yielded some returns, it might have been against NPS’s policy.
In an unprecedented move, South Korea’s National Pension Service (NPS) acquired thousands of shares in global crypto exchange Coinbase in Q3 2023, according to a stock filing report filed by the U.S. Securities and Exchange Commission (SEC).
Besides being open to the public in South Korea, NPS is also the world’s third-largest pension fund by assets. Recently, NPS reported a 9.09% investment return for the first year of 2023, raising the fund’s total asset value to $741.9 billion.
NPS’s Bet on Coinbase
According to the SEC’s filing, NPS bought 282,673 Coinbase shares at an average price of $70.5 per share, bringing the total investment amount to $19.92 million, equivalent to 26.1 billion won.
Since NPS’s acquisition, Coinbase shares have gained rapidly, and the fund has made a sizeable profit on the investment. On Wednesday, the exchange’s shares listed on Nasdaq closed up 6.58% at $98.15, a 192.1% gain from the beginning of 2023.
When NPS acquired Coinbase shares in Q3, the exchange’s earnings report captured $674.1 million in revenue, up 14.2% year-on-year. During the same period, the net loss totaled $545 million.
These figures point to the exchange’s potential, especially now that the crypto market is rallying for a likely bull run. But despite bullish sentiment and the NPS making a 39% gain on Coinbase shares as of November 15, the investment is being met with mixed feelings back at home.
Did the NPS Violate Its Own Policy on Virtual Assets?
According to a local media outlet, NPS has had a long-standing policy of not investing directly in digital assets due to volatility. In 2021, the South Korean National Assembly took a jab at the fund for having vested interests in crypto-related businesses.
While the NPS maintained that it only invested in the exchange and not individual cryptocurrencies, the media outlet claimed that separating the performance of Coinbase shares from that of cryptocurrencies like Bitcoin is nigh impossible.
Specifically, the outlet stated that when Bitcoin rallied on November 9, attaining its highest level in 18 months, Coinbase shares soared 5.14% from the previous trading day.
Stay updated on why South Korea wants politicians to declare their crypto holdings:
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